Euroseas announced that it signed a memorandum of agreement to purchase the M/V EM Athens and EM Oinousses, both feeder size containership vessels of 2,506 teu built in 2000.
The Company also announced that it acquired the option to purchase from Euromar two additional container vessels, the M/V EM Corfu, a feeder size containership vessel of 2,556 teu built in 2001, and the M/V Akinada Bridge, a post-panamax size container vessel of 5,600 teu built in 2001 until September 30, 2017.
The vessels are to be acquired for a combined amount of about USD 25 million from Euromar LLC (Euromar), a wholly-owned subsidiary of the Company that previously was partially owned by the Company. The Company plans to finance the acquisitions with a combination of debt and equity. The vessels are expected to be delivered to the Company in the fourth quarter of 2017.
Furthermore, the Company announced that it acquired the 85.714% interest in Euromar it did not already own for nominal cost. As a result of the acquisition, Euromar, which was a joint venture among the Company and two private equity firms, became a wholly-owned subsidiary of the Company.
The Company has provided no guarantees to Euromar's lenders, and none of the lenders has any recourse against the Company. Euromar, in addition to the four vessels sold or expected to be sold as described above, owns five other vessels, four of which are feeder containerships and one Intermediate size containership.
Aristides Pittas, Chairman and CEO of Euroseas, commented: "We are very pleased to proceed with the acquisition of the four container vessels, which increases our fleet in the containership feeder sector and is accretive to our shareholders. We are further pleased to take full ownership of Euromar and we are looking forward to working constructively with its lenders to maximize the value of its remaining vessels for the benefit of our shareholders and all parties involved."
Aristides added: "We are encouraged by the stronger drybulk and containership markets during the last few months and we hope to be able to capitalize on the continuing improvement of both sectors for the benefit of our shareholders."